Portland rents are coming down – for the wealthy

“Rents have fallen for the rich and risen for the poor.” – Quote in Portland Tribune report

After adding 15,000 apartment units since 2015, Portland’s rental market has proven that adding supply does address demand and lower prices — but the question is, for whom.

According to new data from Zillow, Portland prices have dropped 2.7 percent — but that drop is mostly in high-cost housing, which is where most of the units have been added. From an article in the Portland Tribune:

Portland and many other major cities have been inundated with a glut of luxury housing in the last few years, and local developers are reportedly sweetening their deals with Amazon giftcard giveaways and related gimmicks in order to lure wealthy customers.

This seems to be a nationwide trend, but Portland is leading the way:

Zillow’s experts found declines in annual rental prices in more than half of nation’s 35 largest markets, but the Rose City led the way — with the biggest decrease between September 2017 and September 2018.

The article concludes:

As two freelance journalists recently put it: “Rents in Portland have fallen for the rich and risen for the poor.”

Who knew? This blog, for one: we have been warning for some time that a “build, baby build” approach is dangerous, and likely counter-productive. We have to be much more strategic in how and where we build, and for whom. Other more thoughtful voices have also been speaking out.

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Welcome! This forum presents an alternate perspective on the current challenges facing the city of Portland, Oregon. What effective solutions are available? What is the actual evidence that they will work, or not? How can these lessons be applied in Portland? We will pass along regular entries on timely issues from other parts of the world, comparing notes on our challenges here. We will also offer our own commentaries and those of Portland-area colleagues.

Portland is rightly regarded as an important global model of urbanism and of urban successes. Portland started with the advantage of small blocks, facilitating walkability; the Urban Growth Boundary was created in the 1970s, about the same time a freeway along the waterfront was replaced with Tom McCall Waterfront Park; Portlanders’ love of their natural setting ensured tree-lined streets and efforts to protect views of snow-capped Mt. Hood; a proposed multi-story garage in the city center became Pioneer Courthouse Square in 1984, thanks to community effort, and many other squares and parks have followed; a streetcar system and light rail were started, which gradually helped to generate suburban neighborhood centers, improving walkability; a compact mixed-use neighborhood began to replace the old industrial area of the Pearl District, initially at a good human scale; and early development of bike lanes positioned Portland as a leading US city for bicycle planning.

But we must be honest: Portland is also, and increasingly of late, a model of what can go wrong. But that too is an invaluable contribution to share with other cities, as they share their lessons with us. In that process, we may all learn from our mistakes as well as our successes, and find a path to becoming better cities. We may thereby reverse the downward spiral of so many cities today, including Portland – losing their affordability, losing their diversity, losing their architectural heritage, and becoming places of isolation, homelessness, traffic congestion and – for too many – economic stagnation, and declining quality of life.

Our chief bloggers are Suzanne Lennard and Michael Mehaffy, both with Ph.D. degrees in architecture (at UC Berkeley and Delft University of Technology, respectively) but also with wide interests in sociology, public health, anthropology, psychology, economics, public affairs, and above all, the ingredients of livable, sustainable cities, and how we can get and keep them. This perspective is informed by seminal scholars in urban issues including Jane Jacobs, Jan Gehl, William H. Whyte, Christopher Alexander, Lewis Mumford and others, and also by cutting-edge new research. We hope you'll find it thought-provoking at least, and find some of the ideas inspiring, as we have...